Selling Price Calculator
Quickly compute final consumer or wholesale selling prices, dollar profit, and cross-calculate between target profit margin and markup percentages.
Unit Cost & Markup / Margin Method
Selling Price Mathematical Formulas
Target Margin: Price = Cost / (1 - Margin % / 100); Target Markup: Price = Cost × (1 + Markup % / 100)- Margin Pricing: Ensures that after paying costs, the specified percentage of cash collected remains as gross profit.
- Markup Pricing: Adds a fixed percentage directly onto the base cost.
Step-by-Step Worked Example
Calculation Steps:
- Calculated Selling Price = $80.00 / (1 - 0.20) = $100.00
- Profit Per Unit = $100.00 - $80.00 = $20.00
- Profit Margin = ($20.00 / $100.00) × 100 = 20.0%
- Equivalent Markup = ($20.00 / $80.00) × 100 = 25.0%
How to Use This Calculator
- 1Enter the total cost of the product or service unit.
- 2Choose whether your target percentage represents profit margin or cost markup.
- 3Enter your desired percentage value.
Assumptions & Limitations
- Unit cost includes all landed costs (freight, packaging, and merchant fees).
- Target margin must be strictly under 100%.
Frequently Asked Questions
Why does adding 20% to cost not give a 20% profit margin?
Adding 20% to an $80 cost gives $96 ($16 profit). But $16 profit divided by $96 selling price is only a 16.7% margin. To get a true 20% margin, divide $80 by 0.80 = $100.
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